Darden Restaurants Inc. has named president and chief operating officer Gene Lee the company’s interim chief executive, replacing outgoing CEO Clarence Otis, effective immediately, the company said Tuesday.
Lee has long been mentioned as a potential successor to Clarence Otis as chief executive of Darden, who was set to step down in January of next year. The shift in leadership at Orlando, Fla.-based Darden is the first move under a new board of directors — one put in place last Friday when shareholders made a rare, wholesale change to the board at the company’s annual meeting. Darden certified those results today.
That rout in the boardroom was led by Jeffrey Smith, chief executive, managing member and chief investment officer of Starboard Value L.P., the activist investor that owns about 8.8 percent of Darden stock. Smith is now Darden’s non-executive chairman.
“The new board and I have appreciated the energy and attitude from within the organization. Gene has proven to be an outstanding leader at Darden, and we are excited to work closely with him as our interim chief executive officer,” Smith said in a statement. “The Board’s Search Committee will conduct a full search for the next CEO of Darden, which will include both internal and external candidates."
Lee’s ascension to the top seat brings an end to the decade-long reign of Clarence Otis, who started at Darden in 1995 and became the chief executive nine years later. Otis announced plans to step down in July — on the same day that the company finalized its sale of Red Lobster, which is widely viewed as the catalyst for the proxy fight that led to the full board turnover.
The succession plan originally called for Otis to remain in the top spot until the end of the year, or until a successor was named. But during the proxy fight, Lee had increasingly become the public face of Darden.
In a statement, Lee said he is “thrilled with the opportunity” and “our teams are energized and looking with optimism at the opportunities ahead.”
Lee came to Darden in 2007 as part of its acquisition of then Longhorn Steakhouse parent Rare Hospitality International Inc., where he was president and COO. Lee then led Darden’s Specialty Restaurant Group for the past six years. That division includes the company’s growth brands, including Eddie V’s, Yard House, Bahama Breeze, Seasons 52 and The Capital Grille.
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